ES - Earnings call transcript Q2 2024

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Operator

Good morning and good afternoon, ladies and gentlemen. Welcome to the Eversource Energy Q2 2024 Earnings Call. My name is Jacquita. I will be your moderator for today's call. [Operator Instructions]

to with conference Investor Eversource like host, to Relations. now Fallon Matthew Energy would pass over the your I Director for Matt, ahead. please go

Matthew P. Fallon

am Director and Fallon, morning thank for us. Good you Eversource Investor for I Energy's Relations. joining Matt

slides During we on posted that this be website. yesterday we'll call, referencing our

uncertainty, the to current be projections. may you statements forward-looking. from which As of are see risk expectations this results during based materially revise obligation statements. Slide on of made can management's any and We to . These subject are investor and some on actual these differ the X, statements call no cause or undertake may update to and forecasts

of results that that reconcile about various factors in non-GAAP cause is information and explanation the recent may to last our posted how our slides contained they the results most News Release, XX-Q. to within GAAP actual and Additional night measures we differ our and

Executive President will be Treasurer. us today Speaking Buth, President, today CFO and is Executive our Also Chief Joe John and joining Controller. Jay our Chairman, Moreira, our President Vice Vice and Officer; Nolan, and

will to now over Joe. turn I the call

Joseph Nolan

Good the thank us and morning, call. Matt. you joining for you, Thank everyone, on

Wind pleased that the sale on of update wind. Let with to that closing quarter. anticipate Wind and infrastructure projects me Revolution we global the of begin third an project our we the Sunrise Fork I to am sale offshore partners closed very report have to and in Orsted South

regulated enable customers. energy tremendous regulated these for offshore a our exit on wind with the delivers business low-risk commitment pure-play focus our to resources transition the to opportunities Closing and being growth clean deals on utility

to Turning X. Slide

minimize focus leader solutions storm outages be customers customer events. during aging to and on on infrastructure continue for our on with sky energy and blue to investments address days resiliency our a We delivering

busy achieve gas goals. to very our the future are reduction We preparing greenhouse region's also for of electrification

our state's our heating growth gas electrification Shown achieve the here we goals. Moving To goals, Slide near-term to commercial are these of residential reduction to greenhouse demand and to and sectors. X. grid investments meet long-term and planning transportation from are

requires will accommodate demands more and more heat resources. upgrade including additional electric EV the energy we customers expanded to and to that effort and expand pumps system to renewable face, new turning cool charging, handle warm This us capacity their homes to needs to the

the In addition, make we systems more forces climate withstand smarter must which resulting frequent change, stronger in mother and storms. intense our to in are nature of and

invest to technologies to grid system to to the more energy automatically smart their information empower system customers the in electric We our with with are control help adjust continuing disturbances use. on and

for recovery on the a These service increasing for plan customers. Eversource make safe to maintain of provide for to and to work levels A company. obtain together regulators and it us our the position these to with timely while to electric reliable continuing system high cost increasing financial our demands, financial solid strong demands critical enables meet position

X. Slide to Turning

to system overhead program smaller future. much largest carbon-free investments Our next on collective demands from is to our X history key nearly in reliability transmission a moving meet investment toward projects new rebuilds is work our line needed needs to in substations program electrification goals. over reduction achieving in the gas is our in $X the transmission Based billion company's years and greenhouse

resources. will and approximately and equal In investment billion X-year clean projects energy to are plan, of of $XXX million these substation new planned enable upgrades $X our substations over transmission

over program also investment billion aging $X replace for transmission investments infrastructure. includes to X-year Our

expect forward. are needed projects incremental forecast, as materialize evaluating infrastructure this We move be could we also additional during requirements we that will and

wind and capacity to infrastructure are the sector import into efforts in electric enabling investment to advancing renewables years transmission regional Massachusetts, As as modernization such many plan come. other we offshore of for advance drive increasing plan there areas that ahead, Boston decarbonization focus will and

magnitude example of transmission just over an alone demand. substations we in meet of we area new a investments you years, that X give planning past the dozen To Eastern constructed the decade. are incremental new are Massachusetts for the in service next Compared in to the seeing XX to substations over

to Moving X. Slide distribution electric on

We electric previous the are our plan preparing investment. In current investment nearly for substantial growth plan. double Massachusetts, in distribution X-year distribution is

clean we energy prepare electric demand Massachusetts, the meet growth for to significant forward goals. As move in to state's

that We will balance our are customers. provide the solutions in outcomes right constantly evaluating for

the allowing the to distribution effectively evaluated in needs. order to determine needs future area that for each efficiently our drive needs specific investment cost system plan In factors us we have carefully system Massachusetts, in and

Turning to Slide X.

program, We progress AMI which is and of energy for we future. our are with enabling know stakeholders very a Massachusetts other clean our critical pleased

critical As replacing the system, will information nearly completed Massachusetts we recently part new program, customer a implementation of foundation system. AMI our of a for a AMI billing and deployment. This new system successful customer provide XX-year-old

system design, and of media expect management which communication summer. on this working currently building are We testing conclude and we applications, our to

next next to year beginning meter in year. Network installation with the start early smart is construction anticipated third quarter

to and dynamic and deliver lower AMI customers, customer and X benefits enable and restoration control greater to benefits energy to design will visibility Massachusetts reliability adjust rate customers enhance numerous storm including access response monitor customer management to enhance electric on to day electric to include use. their bills. Our improved outages program grid consumption Further use

environmental about focus journey is deeply the customer Although committed design, electrification, with keeping Affordability to justice of creative and to transition in excited in we transition the June. future communities Eversource's first-of-its-kind pilot geothermal equitable rate energy clean and of network are center. solutions fair balanced good to front the very on top Massachusetts, we're exploration and of is an A enable online came framing our example in for to which along mind Eversource.

goals. continuing to with we emission productive and forward state carbon the Massachusetts as technologies deploy look partnership our of We our innovative pursue reduction

continue charging program. thank administration the to regulatory Lamont to for the its I clarity vehicle utilities with Connecticut. Turning want electric collaboration to to provide

The program preparing solution now put benefits adequate ensuring our to Connecticut PURA while in place costs. customers is recovery timely and that of

our it nominated regulatory said critical there. heard to of place safe, is this Chairman, is before, service may have and As affordable coming David Makowski, to customers a Also, that who reliable get Governor Lamont environment to the as ensure has you that the way take I the Pure have balanced best in receive new retiring Commissioner January. is Vice

policy is that and General encouraged are keen Assembly. in former David experience We of valuable interest the energy member with a as nominee a Connecticut

to bringing is are We hopeful this support goals. closer Connecticut its policy goals with to that step forward these that in investment state a needed is recognition

infrastructure we Sununu on momentum energy approach Bill collaborative plan July. utilities New still Hampshire, continue assessment demand to with plans signing by distribution Touching to of integrated Governor needs to the projected the Utilities and positive see file House This XXXX in to on XX-year the energy Commission with Public of of the electric requires years, demands. an every meet distribution X long-term forecast for needed a

it's focus these equity Eversource shown of our to our employee has part I and highlight Eversource's been leader on diversity, in XXXX areas the report, on release goals inclusion in specific our emission our and as Slide a of Report DNA. company's and X. Moving many development. Sustainability years, a for to want

to In science-based the reduction this submitted our we've target year's specific initiative. sustainability report, greenhouse targets gas

goals over by made We of carbon also XXXX progress towards with the XXXX our reduction from in our neutrality reaching highlight baseline from operations XX% year. the emissions

transition resiliency We positioned That and utility build about will future. energy uniquely for skills, excited system infrastructure. its the is and enhance are Eversource future our clean to expertise leverage to scale customers. to a

strengthening interest Eversource. regulated Moreira turn low-risk potential, investment Thank call growth progress long your the will focused now value balance our We made sheet. walk customers to opportunities for of over our have investors. our and to delivering a I and results John long-term our you financial on runway through earnings to and you in towards

John Moreira

and This our good I morning, quarter activity. and everyone. Thank update regulatory you, Joe, our provide will earnings morning, results, financing a review discuss second

$X.XX per shown the of earnings of share quarter recurring share our in recurring and and the share quarter as in per X, the last compared second year. second earnings GAAP of on second for GAAP $X Slide $X.XX of earnings As with were XXXX per quarter

of of recall offshore will per investment impairment million quarter of recorded or we $XXX the the charges our wind $X.XX X with second associated first You in share. XXXX,

second We the XXXX. also in our share XXXX. had other items nonrecurring included are per quarter charges of in of $X.X or million results earnings $X.XX for Both GAAP

earnings down the quarter share rate transmission, due Breaking share base second in per with earnings by $X.XX which starting of $X.XX increased segment, electric XXXX. transmission earned with Electric compared to growth. earnings per results

earnings electric compared per of earnings for share Our were XXXX. $X.XX distribution quarter the with per share in $X.XX

a of increase New January of offset O&M higher revenues Instar storm was adjustment the The driven higher expense, favorable regulatory absence base and higher effective driven earnings to year. Hampshire, restoration by prior rate distribution this decrease costs Electric's in due by partially by X year primarily

earnings higher cost distribution August effective to the are Hampshire's by second and Electric half expected capital of rate recovery increase the driven million in $XX X. year, interim be New

XXXX the interest gas from distribution November was $X.XX year. higher partially compared share natural expenses. by and per property due Our with higher revenues business to offset X, earned quarter rate depreciation, per last for The Gas primarily share increase O&M tax lower and increase $X.XX earnings

and per the $X.XX Distribution earnings last The contributed was due segment share in $X.XX year. earnings $X.XX the per higher quarter share recurring share O&M year. with parent per per primarily in companies interest other compared costs. Eversource and lost compared for Water to with share The quarter decrease last $X.XX of

results X% line to XXXX EPS with range higher driver of longer-term earnings and of guidance decrease as to as interest well $X.XX reaffirming second our main was are in this $X.XX our were X% EPS rate. our growth expense. The quarter expectations, Overall, our we

Turning to Massachusetts. with our starting on Slide XX, regulatory update

road address As from with needs. we sector filed modernization to recall, electric electrification in you plan is a the map January, our may which DPU growth

decision this a expect on later our month. plan We

of our in announced $XXX XXXX. $XX.X is back reminder, capital clean our distribution plan modernization energy million through for electric initiatives resiliency forecast $XXX calls incremental and of investments interconnection a February. capital X-year sector to This resources million billion As for we

system. represent capital billion pleased early of project June, to of report to approximately of approved investment approved on in first projects investment projects $XXX capital the interconnection December our total I'm investment. the the million X $XXX enable of in and with Combined distribution million transmission these investment DPU large-scale that $X generation approximately with Next, XXXX, of resources distributed additional

change. included our the be investment first base for per from This $X end of reset the subject This in of billion rate we billion EGMA, effective plan. revenue to rates which rate to our reconciles reset May, cap In X, capital as to base, $XXX XXXX. November XXXX. has filing million is our is X-year increased settlement filed our on approximately This rate $X.X a related of to agreement as the base of acquisition

With are million this the and application of increases effective revenue X, $XX.X million the November $XX.X revenue proposed XXXX. year cap, this

pleased of Closing which billion Massachusetts project. from our included Energy Board the receive Facility regulatory investment items, billion This we plan. $X.X is investment, were to the X-year for a final Massachusetts out the substation is capital in Cambridge Siting $X of approval

And the balance address will XXXX needs project the new city and that the consists This XXXX. of remaining Cambridge surrounding area. of in growing and a the electricity of underground substation

filed recover our Turning $XXX rate June last early million since investment XXXX. to Hampshire. a than PSNH in rate more in New case case of to

That requests base steps. distribution range in million rates. in rate a filing of X will $XXX take effect The

of rates into effect $XX go go will reflecting X year. today, adjustment increase of million, with next August rate to into the an first on remainder The

improve will proposes Interim includes rate until company recovery response and The the we with vegetation due management of reliability to costs recover final a more year. enhanced filing to provide frequent storm more associated events. intense investments cash decision to next the to made flows and storm and rates increased receive

Hampshire reliability off company's New have customers. certainly paid the days, for our sky blu On in investments

XX% Hampshire For X to investments in improved XX% part percentage events to in example, than restored the minutes of from XXXX in in XXXX. banks distribution large technology, has less automation over customers in New in nonstorm

since costs last In addition, rate case. O&M our company has the rigorously controlled

proposed also capital including rates performance-based our implement We mechanism commission. to be that support plan, by the adjust to annually approved a have ratemaking X-year would

and case that cost with We million. infrastructure generation This In Connecticut, enhances integration aging is of this customer a transparency maintaining for for distributed on cash storm resiliency of additional anticipate the final XXXX. mechanism review the flow supports PBR. replacement decision in underway comes discovery in investments, while the prudency investments $XXX

to preparing file restoration for XXXX also are later costs prudency this XXXX. storm for We to related and early events storm review in year

vehicle electric now on from of will PURA received Joe the debt on to supporting program a tranching constructive XXXX. that continue As that I'll will to our items to recovery a XXXX flow ratio allowing enhance position. decision FFO provide enhance an we us cash cost for mentioned, the Slide XX update under our customers framework shown from

First, costs, and matching including became effective the XXXX The adjustment has in of public a several related level XXXX. million rate this July rate of in expect collections costs. we recovering reset July recovering Xst approximately adjustment XXXX annual is recurred year, Connecticut to from X cost $XXX that rates under benefits

hardship Public benefit of and nuclear power Millstone costs contracts and the the costs. include supply uncollectible energy cost with Seabrook plants

the be to of we Sunrise Wind million that of sale down $XXX received net with closing debt. will of Austin, Second, our proceeds to used pay

subject anticipate billion, of receiving to and for of proceeds our Wind sale capital Partners, approximately closing expenditures. Revolution adjustments of Global South Fork $X.X Third, gross we to the Infrastructure

also to debt. pay will down used These proceeds be

to As adjustments. is from these expenditure a there financing reminder, no capital our plan impact

filings additional addition, will flow increases PSNH enhancement. the rate EGMA at In distribution at for and cash provide

regarding have raised issued through issuances, equity our year. of lastly, approximately and equity And approximately half this XXX,XXX the our treasury million in first program shares we $XXX ATM of

continue $X.X years, several up of next to billion the We as Slide XX. shown over equity means on to anticipate

to We of initial are our sell have we Water phase making this report effort progress that process. I'm launched recently Company. happy the to on Aquarion

to give of in give improvement FFO FFO All our actions debt and at a of above XXXX road debt S&P the confidence to in map ratio in target for achieving XXXX. to XX% us our us clear XX%

$X.XX. off and recurring that EPS you can XXXX through as confident Slide proven to see plan X% will growth, of summary, we our rate XX, financing have are and X-year forecasted enable growth capital $XX.X earnings our a based our track we X% EPS on dividend us robust record and In XXXX our of to drive billion of forecast

the Q&A. I'll to Matt back call now for turn

Matthew P. Fallon

Thank you, Jequita.

We ready are for now Q&A.

Operator

Instructions] [Operator

Pourreza The first Guggenheim with question comes from Partners. the line of Shah

Shahriar Pourreza

Connecticut. I constructive outcomes just the everyone on governor starting Joe, the EV sounds brought with maybe It side. mean there. some like together

how $XXX a AMI. state? also some capital Could flow working allocated in kind of view? through of shoots Are green we million still to the back of like in see You're recover you kind these your that into

Joseph Nolan

Yes. Well, you. thank

of I to we areas As our you in of the work relationships will that is diligently know, had committed on folks This focus. one Connecticut.

about talked we from know, exit wind. you As our

of strategy. seeing Aquarion. that I that think executing you're we've successfully Connecticut, the sale

With had jury a wish still I I of comfort Connecticut, now, degree that regard could I to right high say is the out.

We are grateful for Governor Lamont's leadership.

that. done he's at and to job, good I think a we'll continue work

energy. informed than taking in You AMI to on for get environment have we I continue my you, that commitment investments make that I've of down allows relationship today place what's especially to us because use any work more that so system got a a stable have there, ever the tell around markets, important to that regulatory energy that will customers make to we AMI around is their decisions

saw in around we're dollars markets, need to this think that going PJM our in to energy. allow our took what to I order and to type spending the of customers is the on deploy technology it those make place decisions states their in

Shahriar Pourreza

Got it.

size, And to some we the sort like number? just to X sorry, of noise of governor the is expand Or PURA there's could there, X? magic see

Joseph Nolan

Yes, sure.

X% is governor now the go at will January. down it to X, in but So

mean, strike with I've wants I told what a certainly, committed. strike is had governor has he the he that's me Connecticut. think a he wants him, in that to I balance any to and discussions balance,

may go to he yes, So X.

But stability again, going to he it. -- approach. of to it's sure a wait-and-see he's make brings the It's to certainty state taking work regulatory and progress at Connecticut. to a we're that I continue in think work

Shahriar Pourreza

it. Got

around then forward goal Got without guess point at point some and Is Acquarion it. anything Acquarion it? time February I the Okay. mean, spring the And on data lastly, next on this trade I press muni for just roll points your of the any kind process. can put line? in you to this legislation sale it a finer the

Joseph Nolan

That of Yes. a around absence our seal I in particular would have in the legislation and the was to participate that in tell been able to was designed lot legislation, piece not bit discussion that. you, first, a of terms of process. there one of allow process, that legislative of

it of any So leg else. doesn't anybody than more them a give up

group. very a have We robust

So encouraging wanted that was player that in is a that are this They known there. a entity to be Connecticut.

want So to talk timing? move the will process you respect with if -- to we And John, about forward.

John Moreira

remarks, finalizing formal had would by in by of 'XX that, my our in transaction assume we the wrap mentioned -- by I end actually through 'XX. the forecasted still way recently launched as NDAs that we're our financing the working we some Sure, up plan, process

that that's -- our So time frame. no change in

Operator

the comes Jeremy The next JPMorgan. with question line from of Tonet

Jeremy Tonet

debt that to I right, FFO if the bridge. under specifically to just I back go It I've is I recoveries to the million that $XXX want listed just to looks could. like the want in sure slide, make twice. on the seen

to want So what's happening clarify of I kind just there.

John Moreira

at you it -- to way the highlight up will end Well, look if this is table, to calculation. designed debt was Jeremy, in where the the the FFO

the the be enhanced -- So there million billion $X.X is and $XXX the offset the will numerator will of debt. impacting math

that in table there. of purpose that's that So the -- was

design. So any sorry you confusion. that in add the was of if But kind the

well 'XX. numbers Jeremy, it's mind, to continue that I just in certain are there Keep only in beyond keep reflect mind recoveries think 'XX. important 'XX and that Obviously, these will

Jeremy Tonet

a I just just update close? timing. the bit. little on, to there I guess, everything Got want when back go you to shifted the it. us I And would That's And time sale there. Could helpful then wind line guess offshore

there. Just to wondering note if there's anything

John Moreira

potentially is And we've or we've were did X, July on shifted. Wind. the Sunrise the and close will We Jeremy, to in early quarter. time already not what late has guiding close expect said this GIP We closed QX this deal line we that Well, that QX.

Operator

The with of Barclays. the next question Nick Campanella line comes from

Nicholas Campanella

Yes.

I question wanted -- just on to So follow on Jeremy's just up offshore the to wind.

Revolution, year costs give the you on actually to sell does CapEx Eversource then for you incur can this wind stand an and state offshore much how of GIP? the you on construction those assets a expenditures? just status Just maybe us where And capital before just

John Moreira

we foundations, the We -- connected which would knowing as I very time ago, deployment restrictions. is Well, year capital From Jeremy, an progressing installed, as or had remarkable very, of a monopiles well. we information is the a that the sorry, of construction -- know, a with, at when task probably as the that XX% Nick, disclosed week standpoint, you that. haven't is really activity since obviously, we I'm -- you they're

Joseph Nolan

third may That the sale imminent. the process quarter. is happen in It

So you'll have line of sight.

Nicholas Campanella

guys kind have of still IRR about that per you GIP underlying deliver feel you to good contract? that to as the And

John Moreira

Nick, do. very construction Yes. mean Yes, I the well, -- stated, is I we thus just activity as far. it's going

Nicholas Campanella

to do you you case ultimately in the But now, over you some wind $XXX Connecticut recovery, the asset have to that and phase to I storm just proceeding last So that. there's right and the discovery in just through that on for year. shift currently? know file enhancements, cost in outlook Just us have mechanically, rate recovery walk a you're maybe million what's you rate Or been that regulatory cash the debt that get can in the get FFO case back down?

John Moreira

sure. Sure. Yes,

million okay? storms, jurisdictions, X $XXX years. any related million, $XXX $XXX recovery in the Mass more in And with not of -- start only is The and period mind, the X-year The Connecticut is does Hampshire. is those keep million is recovery me all both recovery of Nick. it to this New Let reflect

in pertains front it prudency a million review. PURA to of that request $XXX from have As we

out, is we're currently acceleration As through have will frame bit more schedule an there of a to laid hoping take XXXX. September-ish time us the which of

do prudence in case once into the really you that review you we -- been historical Connecticut, would time. align rate has around in rate you rate storm new The and costs. when So we potentially prudency and goes effect, of the the expectation -- that then with then and the file a process that's up, do file could a is case the buttoned those rate the roll would case that

Operator

Research. The next of Steve with Fleishman question line comes Wolfe from the

Steven Fleishman

close a Just on to prior loop of maybe kind the question.

on cost the whatever Revolution still that is good estimate? cost Just latest a estimate

John Moreira

As now, of But to as on of right continue with right updates. now, always mean, we work I yes. us further

Steven Fleishman

just And plan. equity -- on then on the Okay.

at only think was I So plan? of recall, this breakage kind of I that get and go-ahead with beginning back but did year, had the the current when before up you Sunrise $XXX you potential If the came million, on you not the avoided you think costs. I

John Moreira

correct. correct, That's That's Steve.

Steven Fleishman

billion. guess, flux. And is other obviously, that the so on little maybe now just And kind things and I of have specific since a up -- that to that you more get plays more like in color just maybe done to given I But now color how still into have $X.X we update.

John Moreira

Sure.

So have I think a nailed We to the things you of lot that answer question. do in just flux.

part of of Our I -- disseminate way together forecast and of lot and we're it a forecast our takes. and pulled when February, had in a navigating still that. lot we guidance through financing puts our assumptions it had our

it's right $X.X our number billion until today, Where needs. we here, think stand I reach is early to on closure. give too as the certain we a guidance So are further bit things equity

Steven Fleishman

the just X-year was you like the me for that? over remind time what whole or... the billion, period can frame Was that the And $X.X

John Moreira

What was the guidance that years. we've several the said next over

Steven Fleishman

years. Several

now. for And it I yes, think Okay. that's

Operator

the comes Stanley. David The from question next of Arcaro with Morgan line

David Arcaro

known items, in just out anything specifically has I the Or here? wanted upside in debt enhancement changed changes the mostly underlying more slide. to any like, there? is downside? Or circle breaking the just to enhancements was wondering FFO some there -- this them the back if to of or pulling on have been I

John Moreira

harvest developed would is headlines, we've included always I benefits of items -- generated has to not that's tax things been the has materially cash refunds. right? of one are the the These say, some that able change some However, Yes. in that the major, slide

And XXXX not other an inflow that that tax quantified. $XXX been refunds we the noted other the -- thing had million. of about has -- the of that's thing So alone

is But in lot you the my a increases. intel rate formal remarks, of I did give

We And going we've in. that with then have sizable significant were the kicking PBR to with of we rate a made mechanisms EGMA that the to investments have level increase in very recovering utility. normal

approval we at yesterday, And rates interim XXXX. hope the million increase effective rate final with got we another the PSNH, $XX within to XX just And X of months, August rates. have next to of decision the change

So to that would this upside further quantification be table that's shown, David.

David Arcaro

Great. the That's $XXX an that's not be so would helpful million And that upside. here color. currently, included in

John Moreira

That operating enhance flows. Correct. numerator would and the enhance our cash

David Arcaro

a Okay. that I big in And this would on then system. Awesome. obviously, wondering that that it's you anticipate base It's issues made was investment given the any all increase, with you've just rate step-up. EGMA, -- pretty

what wondering the might be? Just increase? And case extent would this be to expectations the your then cap, challenging subsequent without you hit subsequent

John Moreira

our us this comfort do when that assumed agreement first all what we gives entity hit the through that that, X This the in. We say the that to regulators, this key I part and that's roll fact cap. needed what in. of kick will is investments roll-ins to company. of stakeholders the rate worked with we we is the And Yes, -- that rate-based would was base as the settlement why as expect needed, the acquired

November in one And November kick I XXXX. in second will as The -- then we kicks just X on this X, year. is of morning, this one the the first announced call

Operator

of the from comes Dumoulin-Smith Jefferies. question next Julien line with The

Julien Dumoulin Smith

How at in suppose, foreshadowing thesis Gas that on but a it, And How be filing Anything little items here on think then of December. flagged versus there It's things second. in of of I watching? on here that's XQ any want think call a so. me here, little about you'd you this Look, on as looking here. do more to up be presumed items some Yankee watching electric for curious there? the bit a those let well? Connecticut? you'd the a I point get maybe about PBR front. talk have gas, for presumably that about shoots . I any 'XX the be related, a year follow elements or How do that quick case? that, the right, year returns the Any that it late speaking of you given that couple been been front, green Again, out kicked that do shoots you'd you think bit that green items

Joseph Nolan

listen, Well, Yes. been tell over there. of just of to communities a down time will that there. serve you I time, spent significant lot spending We we we have that outreach a lot XXX

it. work to continue We

to that be folks it's are over impact the employ extraordinary. I important, we Connecticut. think and I And taxes. think in beginning mean understand million over just X,XXX in our I reliability has type in of Eversource $XXX people state, are numbers

When we first did XX. in that merger, our months was between interruptions

reliability. of between best-in-class there terms down probably months in XX interruptions. over we're We're Now

I about sanitary, you with But that is that. I everything very it's but not. certainty wish could I feel good So tell

spend lot it's it. We commit as have with week, not to last are behalf as I continue there time. we makers. my to do opportunity I I our had my time taking will regulatory a exited is customers to those wait-and-see investors. I until I some also but some certainty of efforts a an to was the spent and decision business, such approach and of will that you focus on can key that relationships get we that our down Connecticut. only time on wind improve

Julien Dumoulin Smith

recovery here, FFO next maybe the that to And period rate in hear in that, Connecticut related time I how Fair to case, you do XXX that think of you then here, would as get the thinking the out I'm had amortization about one. presumably you enough. on Again, on Excellent. right. period, that that change the about just All extent debt do you which to the in case. how think entail? roll you with

John Moreira

Sure.

the amortization years. Connecticut period in historical X So has been

Julien Dumoulin Smith

Okay.

So about that you here? $XXX get million a year . of uplift approved after

John Moreira

Correct.

part As remarks, prudency formal the of that file to we're That's incremental our we've not second for my also preparing I storms mentioned request incurred. XXX. in

this So goes that in later hope we closing to -- year.

Julien Dumoulin Smith

case trued that rate? And that for that, presumably, would a next kind up be be also . would in the XX run incremental Exactly. such of

John Moreira

is That correct.

Operator

with comes The line the of next from Glenrock. Patterson Paul question

Paul Patterson

I we simply attribute is up on case? what delay follow the the wanted in be The to the thinking do PBR that that question Is Or about? on just there particle else something on of complexity Julien's the you case, to? should Connecticut.

John Moreira

Yes.

allows glad with to pushed key out. and for the did . stakeholders think we're key Connecticut that allows PBR this. stakeholders to in these in collaborate been structure. pushing reach very and we've I for -- it It It get and a constructive us bring

we familiar what very formal on the And looking type of -- recently, introduce we're in Massachusetts. are I mentioned in Hampshire. the my We structure have the as New in to with same PBR, remarks,

Paul Patterson

that with and Okay. White of pushing lot there's everything, well, as to or that, what and build-out And with about sort as you from that you. -- implementation guess, there's for I'm enhancing the be And you have this see just et looking of you think you of doing? I a from FERC, the you're transmission the you know, about at wondering kind or any at and respect then to respect England what and issues given how give your color what technologies, everything might there DLR, to seem technologies House, of agreed cetera, those have New opportunities

Joseph Nolan

attractive you in of related think FERC the that piece I is been we've know, participants And forums. these our of Sure. Eversource XX% and transmission. business over I one active mean as

very we're at it. good So

that in we deployment the forefront and can probably the have you of technology, be think will at any I engineering industry technology of I them. type of talent our Eversource or opportunities. best the promise

Operator

Anthony Crowdell with the from Mizuho. line comes question of Next

Anthony Crowdell

that I going look at table back apologize guess older goes clarification. Is numerator got bottom goes I and keep quickly saying into way this, like X.X then just Slide plus right below was on on denominator? product the the the to there, X, line FFO on and so nothing. top X green brother you're the feel the just I green or just to XX on the what's the a

John Moreira

side, these 'XX numerator then I inflows again, mentioned, period. once debt Correct, and Obviously, And those with to beyond which only cash we reflect will would permanent our deferrals be 'XX. continue as the that. that because offload previously on numbers

Operator

the with Morningstar. The Miller Travis from comes next question line of

Unknown Analyst

to recovery, New primarily cost on Or number, I'm clarification million the is just for go here XX again it to the is going something else? quick Slide $XXX right? one that storm Hampshire the

John Moreira

it's New both Hampshire. No, Mass.

Unknown Analyst

That's part right of the now. prudency review

John Moreira

-- Those review multiple No. the prudency things Matt. happen, there's

review So been happening -- rates. Mass. These in in what prudency these costs approved we already have do have and a are

through the review in for Massachusetts. there. one that's for New we yes, good chunk $XXX -- any of Hampshire that prudency going a So The filed million

will kick will the XXXX. permanent time be into effect, goes That right that in rates in which around

window. So in there a Massachusetts recovery has Hampshire is a both New X-year and piece of And I mentioned, here. that as

Unknown Analyst

Got it.

Okay.

that of that bucket So goes the kind rate increases? into of filed

John Moreira

Correct.

Unknown Analyst

Yes.

Okay.

your or your New financing your level, CapEx, legislation that enhance then the could good. next years? And growth Hampshire plan how your changes that high just give planning? Very some thought the high-level benefit IDP, grow Okay. X-plus how either thoughts us what's CapEx on that in might How on

Joseph Nolan

pleased. mean, of clarity the that integrated very and our that were planning in operation. our advance the glove legislation We I type as we with goes entire to begin mean, hand Yes. I investments.

think refreshing important well we or that's that Massachusetts Hampshire it's for what's a something positive and And about. as as in to understand we're we're delivering I us, about that very very, all step -- collaboration. administrations, that's on. what what's We're and really was there those what it's that New still

John Moreira

investments New mentioned, have we've that customers those Travis, made. experienced I from As our . Hampshire benefit the

Operator

question comes Citi. the from The final Levine of with Ryan line

Ryan Levine

clarifying Just quick X questions.

GIP no will other disclosure then you laid talks that on to be in of out? terms cash out comments, In flow the we that the there's metric estimates get a triggered gross to to the free clawback FFO that terms of we your actual on at reflect that based any assume debt the net there about would of actually be number looking that should And in a proceeds. adjustments Is should metrics? deal, material cost the

John Moreira

No, to But mentioned in that to as I Ryan, will in in of any the have not as itself Yes. with our formal on saw the original impact financing Sunrise reconcile was the we purchase embedded my and that plan. have we CapEx remarks, price.

the the we to comes down. what than what purchase we more We agreed purchase price increases. had less spend spend We thought than price

impact So really, no whatsoever.

that a be we I right potential As mindful. a it is contingency well. the as relates to along, from been we've to But that the be would standpoint construction there pretty revolution to we as construction subject far, saying so have mentioned, has activity gone

Ryan Levine

debt window the gross material Is years next for that in the disclosure or any receipt there be versus FFO targets X-year net adjustment X could proceeds then And in there? to the reflected? Okay. of gross to terms your

John Moreira

No. Not as the nothing. no, close see now. right once flips GIP. obligation we don't of the transaction, Because to funding that. No, We

Ryan Levine

Okay.

no So Appreciate the or taxes it. there's anything lines? tax on

John Moreira

. Okay.

Operator

no at conference time. to the I over for back Matthew like pass this closing . are questions remarks. additional now to There waiting would

Joseph Nolan

I a grateful hope everybody, of Yes. a you call, opportunities Thank and earnings and the you morning, in lot you Eversource all joining for at us the to earnings you, to get know Have the charge get join I day. great fall. of and chance a EEI for the this I and call, I'm you see chance all had batteries, a

Operator

That concludes today's your you call. for participation. conference Thank

disconnect You lines. may your now

Eversource Energy (ES) 1 Aug 242024 Q2 Earnings call transcript